How a Product or Service Can Deliver Value to Customers Through 4p's Concept

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HOW A PRODUCT OR SERVICE CAN DELIVER VALUE TO CUSTOMERS THROUGH THE 4P’S OF MARKETING -------------------------------------------------
(BOSCH Power Drill GSR 10.8V Professional)
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SCHOOL OF BUSINESS
BUMKT 5901
(MARKETING)
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A learning tasks and assessment for
MASTER OF BUSINESS ADMINISTRATION
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By
Ananda Raj
Student ID: 30088081
MARCH 2011

Table of Contents

1. INTRODUCTION
1.1 Background of 4P’s principal
1.2 Purpose of the report
1.3 Brief information on Bosch Power Tools

2. CONTENT
2.1Description of the Bosch Cordless Drill
2.1.1Product
2.1.1.1 Value delivered
2.1.2Promotion
2.1.2.1Value delivered
2.1.3Place
2.1.3.1Value delivered
2.1.4Price
2.1.4.1Value delivered

3. CONCLUSION

4. REFERENCES

1. INTRODUCTION

1.1 Background of 4P’s Principal

Based on Neil H.Borden (1959), the term ‘marketing mix’ came into picture, which was initially adapted from James Culliton(1948) who described marketing as a mixer of ingredients. It was then merged into 4 main elements by Jerome Mccarthy (1960), better known as the 4P’s principle in modern day marketing, which consist of Product, Price, Place and Promotion. Clear relation between the elements can be referred on Figure 1 as below.

Figure 1: 4P’s description

The element Product explains on the physical attributes of the product or intangible aspects of the service and cover the things that we do in order to make the product more attractive to buy. For example, brand name, functionality, style, safety and quality to name a few. The element Price explains on whether the product is going to be sold on a higher price and make a profit on a shorter term or selling the product on a lower price and sustain profitability on a longer term. Element Place talks about the decision on where to sell the product, the channel of distribution and how to get the customer in the best possible way. Element Promotion stresses on information flow to the customers on the product, through various ways such as mass promotion (advertising, publicity), sales promotion and personal selling (NetMBA, 2010)

1.2 Purpose of the report

The purpose of the assignment is to capitalize on the 4P’s principles defined above, subjecting on a specific product and in the process, creates value to the customers. The product which would be the subject of discussion is Bosch Power Tools, specifically on Bosch Cordless Drills for professional users.

1.3 Brief information of Bosch Power Tools

As an overview of Bosch, the history of establishment goes way back to 1886 by Robert Bosch who started of with a small craft business in Stuttgart called “Workshop for Precision Mechanics and Electrical Engineering”. Over the years, it has expanded from automation focus to other branches of products like power tools, household appliances, security systems and so on. Bosch Power Tools, in specific was established in 1928 and competitively released the tools to the market in 1930. At present, Bosch is the leading manufacturer of power tools in the world for do-it-yourselfers and professional users. (Bosch Official Website, 2009).

2. CONTENT

2.1Description of Bosch Cordless Drill

Bosch Cordless Drill are power tools with rechargeable battery attached to it. Cordless power tools have the advantage of mains-independent operation. They are usually small in size and therefore easy to-operate. They do not require a mains power cable, operate in the low-voltage range and can therefore be used safely in wet environments and outdoors. Cordless power tools have standard voltages between 2.4 volt and 24 volt. The following voltage...
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